Apple's Exorbitant Prices For Its Products Is Making The Company Ultra Rich

Apple is on a roll when it comes to earnings and revenue figures as the company recorded a 29 percent increase in its fourth fiscal quarter. The company earned its overall target of $62.9 billion and exceeded expectations for the quarter.

Even though there has been no change when it comes to unit sales year on year, the company managed to increase its revenue thanks to higher prices for its products. The company introduced its first $1,000 iPhone last year and the price hike seems to be working when it comes to earnings. The company doubled down on its highly priced product strategy this year with the launch of iPhone XS, iPhone XS Max and iPhone XR.

Apple also expanded its portfolio earlier this week with a brand new iPad Pro and MacBook devices. Apple has increased the price of the MacBook Air to $1,199 ($999 previously) and the same can be said about accessories like the 'Apple Pencil 2' and the Smart Keyboard.

The record revenue from higher priced products proves that Apple's customers don't care about the price hike and are still shopping Apple's offerings. According to Apple chief financial officer Luca Maestri, the iPhone X, iPhone 8 and iPhone 8 Plus had a combined 98 percent satisfaction rate among customers. This resulted in the iPhone raking in 59 percent of Apple's total revenue last quarter. Apple saw revenue increase not only in the products segment but also services.

Services such as Apple Care, Apple Music, cloud services and the App Store also raked in $10 million in revenue last quarter. "Services are important not only because they are growing faster than some of Apple's traditional device categories, but also because services revenues grow based on usage, not new product sales," said Avi Greengart, research director at GlobalData. "As smartphones mature and consumers hold onto them longer, Apple can still improve the user experience — and make money — by making what you already have more useful.”

According to a report by our sister website Economic Times, Apple's net profit in India jumped to Rs 896.3 crore for the fiscal ended March 2018. “The company saw its total income (including other income) rising about 12 per cent to Rs 13,097.6 crore in FY2018 from Rs 11,704.3 crore” the report said.